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The profit tax of Japanese automaker Honda Motor Co. for the third quarter fell 71% over the previous year, due to increasing incentives, an unfavorable exchange rate and sales of stable vehicles offsetting the gains resulting from the cost reduction, announced the company.
Honda's profit from October to December, based in Tokyo, stood at 168 billion yen ($ 1.5 billion), up from 570.3 billion yen a year earlier. Quarterly sales remained unchanged at 3.9 billion yen ($ 36 billion).
An unfavorable exchange rate against Asian and global currencies hurt profitability, Honda said on Friday. Japanese exporters such as Honda are vulnerable to such fluctuations.
Quality spending, which also contributed to last-quarter earnings declines, is not directly related to mbadive global recall of Takata airbags that have injured Honda in recent years, the company said.
In the Takata airbag recalls, the inflators can explode with excessive force and project shrapnel onto drivers and pbadengers. At least 23 people have died from the problem in the world and hundreds have been injured.
Honda, which manufactures the Accord sedan, the Odyssey Minvan and the Asimo robot, said it faces various US clbad actions related to airbags. Honda said its April-December regulations totaled 53.8 billion yen ($ 493 million) last year, and that it could face more such expenses.
Honda said motorcycle sales had increased in Vietnam and posted better sales in its financial services sector.
Honda has raised its profit forecast for the current fiscal year, ending March 31, to 20 billion yen ($ 183 million) from previous forecasts, to 695 billion yen ($ 6.4 billion). of dollars). This represents a 34% decrease from the previous year.
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